The Unified Payments Interface (UPI) has brought a revolution in digital payments in India. With the arrival of the new year, several changes have been introduced in the UPI regulations, providing additional convenience, financial accessibility, and secure transactions for Indian consumers.
Higher transaction limit for hospitals and educational institutions
To facilitate high-value real-time payments, the transaction limit for payments related to hospitals and education has been increased to 500,000 rupees. This change encourages the use of UPI in transactions related to these sectors, benefiting both consumers and merchants.
Pre-approved credit on UPI
Pre-approved credit line on UPI aims to enhance financial accessibility in India. This service will enable individuals and businesses to avail loans, making access to credit easier for them.
UPI in the secondary market
The National Payments Corporation of India (NPCI) has introduced “UPI in the secondary market”, allowing limited adopters to block funds upon transaction confirmation and settle payments on a T+1 basis. This initiative aims to create a simple and efficient investment environment, enabling faster and more transparent transaction settlements.
UPI using QR codes on ATMs
Currently in the pilot phase, UPI-enabled ATMs using QR codes allow cash withdrawals without the need for a physical debit card. This change brings greater convenience and financial accessibility, reducing dependence on traditional debit cards.
Four-hour cooling-off period
To enhance the security of UPI transactions, the Reserve Bank of India (RBI) has proposed a four-hour cooling-off period for users initiating first-time payments exceeding 2,000 rupees to new beneficiaries. Users can cancel or modify transactions during this period, ensuring greater security.
These changes aim to streamline and secure UPI transactions in the evolving landscape of digital payments. The integration of UPI with credit systems has already enabled easier access to credit, and the introduction of new features such as single blocking and multiple debits simplifies transactions for customers. Furthermore, the expansion of UPI services to feature phones increases financial accessibility, enabling smooth acceptance of digital payments in rural areas.
Users of payment applications are advised to verify and ensure that their UPI IDs are active, and assigned phone numbers are active, to avoid deactivation by NPCI. With these new UPI rules, the digital payment ecosystem in India continues to transform, making it more convenient, accessible, and secure for everyone.
The source of the article is from the blog motopaddock.nl